Questions On The Matter Of American Companies Outsourcing?
Posted by China Sourcing CommentatorDec 3
If taxes have not gone up how are taxes proactively sending businesses overseas when they didn’t back when taxes were higher?
Why would being more “business friendly” help the country when the same battle was waged between US states with disastrous results? Ohio is an employment at will state with a low minimum wage yet its now part of the rust belt. When states competed for business we all lost, why would it be different for countries? If the market determines value and value determines price than how does overhead dramatically affect price unless their is a monopoly?
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taxes are driving the costs up, which are sending businesses overseas.
1) Businesses are sending overseas due to increased regulation, already high taxes, and American labor being too expensive compared to foreign nations.
2) Being more businesses friendly will allow American labor to compete with other nation’s labor pools. The threat of a unionizing labor force is crippling to American companies. Unions do nothing more then inflate wages beyond what the open market would garner.
Until we outlaw unions, allow businesses to regulate itself, and give businesses incentive to grow through tax breaks, American labor will continue to decline until is becomes extinct. We are competing in a global economy and we are losing. Big time.
Fact: American’s want cheap goods. Just look at the popularity of Wal-Mart. For example a $8 T-Shirt
Fact: To keep goods inexpensive, you need lower costs (material and labor).
Fact: India, China, Pakistan, etc. that have workers that will work for $5 or so dollars a day.
Fact: The USA has one of the highest labor rates in the world. The UAW typically makes about $75 hour fully loaded where as a foreign car manufacturer has a $48 hour fully loaded employee cost. So their manufacturing costs are cheaper in the USA and overseas. Thus their goods are less expensive.
Fact: The USA has one of the highest corporate tax rates. Pelosi and Reid want to implement a Value Added Tax. So your taxes will contineu to rise.
Yeah, look at Indiana (A ‘right to work state’) – by the time Mitch Daniels figures out his policies have failed the nation while in the Bush Administration as well as the State of Indiana as Governor, the rust belt will have turned into the dust belt.
A “Service Oriented” economy is NOT sustainable – we must produce something tangible here in the U.S.A. or suffer the consequences. A maid cannot afford to hire a maid!
Any company that uses cheap/child labor to obtain a profit has no business being in business.
Businesses were rewarded with defered taxes for outsourcing jobs under the Bush Administration.
Buffett Says Bush Tax Cuts Favor Wealthy http://www.nytimes.com/2007/04/09/busine…
Corporate Taxes Cut for Outsourced Jobs
Bush quietly signs corporate tax-cut bill
$136 billion measure assailed for catering to special interests
URL: http://www.msnbc.msn.com/id/6307293/http://www.opednews.com/populum/link.php…
OpEdNews – Quicklink: Newsflash: Ronald Reagan Raised Taxes (You Idiots)
“Reagan continued these “modest rollbacks” in his second term. The historic Tax Reform Act of 1986, though it achieved the supply side goal of lowering individual income tax rates, was a startlingly progressive reform. The plan imposed the largest corporate tax increase in history–an act utterly unimaginable for any conservative to support today. Just two years after declaring, “there is no justification” for taxing corporate income, Reagan raised corporate taxes by $120 billion over five years and closed corporate tax loopholes worth about $300 billion over that same period.”
Generally speaking, because wages represent the highest percentage of cost, jobs will be outsourced for as long as people around the world will work for less than substance wages. This applies to all but the top echelon in these companies. Profit, not morality, is the determining factor.
the unions forced the companies to seek lower labor rates in the world markets. their attitude of pay or strike ruined the auto and steel industry. demanding $75. per hour was more than the market could bear. today Toyota pays $42. at their auto plant. get rid of unions and watch recover.
The reason is because the US has the second highest corporate taxes in the world!http://www.cnbc.com/id/30727913?slide=10 http://en.wikipedia.org/wiki/Tax_rates_a…
Unions , affirmative action , discrimination suits along with taxes create an environment in which the employer becomes ” the bad guy ” why stay ?
Companies outsource because labor is cheaper overseas period.
It’s called Fascism on a Global Scale.